Tuesday 23 October 2018 11:55 am | Updated: Tuesday 21 May 2019 4:21 pm

Manufacturing orders fall at fastest pace in three years as Brexit uncertainty bites

NULL

British manufacturing orders fell at the fastest pace since 2015 in the third quarter as uncertainty over a Brexit deal continued, according to the latest statistics from the Confederation of British Industry (CBI).

The organisation said the “sobering” set of figures required “immediate action at home and abroad” as it revealed that a net 6 per cent of businesses reported a drop in orders, the weakest balance since October 2015.

Optimism about export prospects for the rest of the year fell at the fastest pace in six years and 16 per cent of businesses said they were less positive about the general business situation than three months ago.

CBI chief economist Rain Newton-Smith said: “This is a sobering set of figures demanding immediate action at home and abroad.

“Planned investment is being scaled back in the face of deepening Brexit uncertainty, so it’s vital that the Chancellor incentivises manufacturers to spend in areas that will help them become more productive. Using the upcoming Budget to increase the Annual Investment Allowance, alongside a wider review, could help the UK become more competitive with its global peers.

“Combined with meaningful business rates reform, these steps can help the UK economy to make the advances in digital and new technologies envisaged in the Industrial Strategy.

“Aside from much-need progress on domestic policy, the Government’s number one priority on Brexit must be securing the Withdrawal Agreement, ushering in a much-needed transition period that will give businesses the breathing space they need.

“Protecting jobs and people’s livelihoods from a lost generation of investment remains urgent.”